Esi

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2014 Dear Sir,

If a person is working in an IT Co and earning 12000 per month.Is it compulsory to deduct ESI from the salary of an employee.As per my knowledge it is applicable only in Factories or manufacturing Companies.I just want to confirm is it beneficial for IT Employees?Can you please guide me from where I can get full knowledge of it.

Thanks.

CA Anuj Mittal

CA Anuj Mittal (Expert)
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24 April 2014
PF and ESIC both are calculated on Basic salary+DA. The rate of Pf contribution is 12% of Basic+DA from either side. And For esic the contribution is 1.75% from employee and 4.75% from employer. Other than this 1.61% is added by employer as EDLI charges.

The ceiling rate for PF is 6500/-month and for ESIC 15000/-.

ESI deduction is mandatory in your case, it does not matter that it is a IT co.

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2014 Thanks for the reply Sir.I also want to know something more about PF.Can you please let me know how many employees should be there in the company if a Co.want to deduct PF.

Sir what is EDLI Charges.

CA Anuj Mittal

CA Anuj Mittal (Expert)
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24 April 2014 Yes, Minimum number of person should be 20 for PF applicability.

EDLI charges is the Admin charges.

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